Brazilian president tackles tough sell at Davos

Jan. 24, 2014
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Brazilian President Dilma Rousseff speaks during a panel session on the third day of the 44th Annual Meeting of the World Economic Forum in Davos, Switzerland, on Jan. 24, 2014. / Laurent Gillieron, epa

by David Callaway, USA TODAY

by David Callaway, USA TODAY

The worst currency crisis to hit global markets in five years is not the best time to pitch Brazil as a place for international investment. But Brazilian President Dilma Rousseff had already made the trip to snowy Davos, so she boldly took the stage in front of hundreds of attendees at the World Economic Forum Friday and dutifully sang her country's praises.

Citing her record of raising 42 million people into the middle class, and her intentions to use the country's oil wealth to improve education, Rousseff described a country in change. She acknowledged that tighter monetary policy would increase short-term volatility in emerging markets but stuck to her guns on overall prospects, even as she was buffeted with questions about the Argentinian crisis in a private meeting with journalists afterward.

The currencies of Turkey, South Africa and Argentina have had their worst week since 2008, as the, um, snowball effect from the Federal Reserve's decision to taper its bond-buying program threatens to yank emerging market investments toward stronger developed markets and their currencies, such as the U.S. dollar. Argentina devalued the peso as an emergency measure.

A tough sell indeed for one of the famous emerging BRIC markets, but Rousseff had an ace up her sleeve. At the end of her speech, she invited everyone to the World Cup soccer tournament in Brazil in June. Tough to turn down, even for jittery global investors.